Portugal to use hydroelectric revenues for Serra da Estrela recovery

The Portuguese government intends to channel a portion of revenues from future hydroelectric concessions toward the environmental recovery and protection of the Serra da Estrela Natural Park. According to a decree from the Minister of Environment and Energy, Maria da Graça Carvalho, a new financing mechanism will be established to fund ecological restoration, water resource protection, and climate change adaptation.

The Portuguese Environment Agency (APA) has 90 days to propose environmental and financial clauses for future concession contracts. These funds will be transferred to the Environmental Fund to support projects involving ecosystem rehabilitation, nature conservation, and wildfire risk reduction.

There are currently 22 hydraulic sites within the Serra da Estrela Natural Park, 14 of which have concessions expiring on October 9, 2028. The government plans to launch a new, potentially aggregated, competitive bidding process in 2027. The new model will determine the specific percentage of rents or financial contributions dedicated to the territory's environmental valorization.